Afcons Infra share price saw a sharp rebound in Tuesday’s trading session after falling for four consecutive sessions after the Indian stock market snaps 5-day losing streak. The stock plunged nearly 13.5% over four-sessions.
Afcons Infra shares opened at ₹281 per share today, as compared to previous close of ₹253.80 on Friday last week. The stock surged as much as 19.23%, touching an intraday high of ₹304.55 on 15 September.
Meanwhile, Indian stock market staged a strong recovery on Tuesday, ending a five-session losing streak. The benchmark Sensex surged more than 400 points in early trading, while the Nifty climbed above the 23,500 level, driven by a sharp rally in information technology stocks. Both indices opened on a positive note with a gap-up. The Nifty started at 23,576.15, compared with its previous close of 23,398.10, while the Sensex opened at 75,369.63 against the previous close of 74,781.76.
What’s behind the rally?
The stock rally came in after Afcons Infra shares witnessed a heavy trading volume. According to data available on NSE, around 168.65 lakh shares changed hands during the intraday session on Tuesday.
According to reports, the stock also rose after the Reserve Bank of India (RBI) turned down Tata Sons’ request to surrender its NBFC licence. The decision is expected to pave the way for a public listing of Tata Sons, the holding company of the Tata Group.
Afcons Infrastructure is the flagship engineering and construction arm of the Shapoorji Pallonji Group, which holds a stake in Tata Sons.
As per a Business Standard report, the Shapoorji Pallonji (SP) Group has been urging Tata Sons to pursue a public listing as it looks to reduce its stake in the holding company. The SP Group, which owns around 18.5% of Tata Sons, had also proposed an IPO at the company’s 2024 annual general meeting.
On August 24, the company informed that it has received an arbitral award of ₹335.50 crore from Uttar Pradesh Expressways Industrial Development Authority.
“In the arbitration proceedings between Afcons Infrastructure Limited (“Company”) and Uttar Pradesh Expressways Industrial Development Authority (“UPEIDA”), the Arbitral Tribunal has on 24th August 2026 passed an arbitral award in favour of the Company awarding principal amount of ₹152.25 Crore along with pre-award and pendente lite interest (at SBI Base Rate with quarterly rests from 01.05.2019 to 24.08.2026) of ₹183.25 Crore. Thereby, aggregating to total award amount of ₹ 335.50 Crore,” the company said in the filing.
According to the filing, there will be an positive impact on the financial position of the company. The awarded amount shall be payable subject to the condition that the counterparty does not challenge the award within the stipulated period prescribed under law.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
